Ukrainian corn hits four-week high on stretched logistics

Ukrainian corn hit a four-week high Tuesday amid tight supply due to insufficient numbers of rail cars to support shipment from farms to ports, sources said.

The most affected farms are typically those most inland. Private sector initiatives are under way to make good the shortage of rail cars, according to sources. Supply has also been tightening due to rain slowing the local harvest, according to sources.

Ukrainian corn was assessed at $160.50/mt, up 50 cents/mt day on day to the highest since September 14 when it touched $161.75/mt.

Nonetheless, with high levels of corn available on the world market and many traditional export destinations for Ukrainian corn such as the Middle East and North Africa already well covered, Ukrainian farmers remained under pressure to supply at competitive prices, sources said.

Globally, corn prices have been in retreat for some time due to large harvests and the prominence of players such as Argentina whose policies on grains exports have been liberalized.

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